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Should Value Investors Buy Regional Management (RM) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Regional Management (RM - Free Report) . RM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 5.01. This compares to its industry's average Forward P/E of 8.10. Over the last 12 months, RM's Forward P/E has been as high as 8.98 and as low as 4.14, with a median of 5.33.

Another notable valuation metric for RM is its P/B ratio of 0.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.93. Within the past 52 weeks, RM's P/B has been as high as 1.03 and as low as 0.63, with a median of 0.78.

These are just a handful of the figures considered in Regional Management's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RM is an impressive value stock right now.


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